The finance ministry on Friday revised upward the interest rates on certain small savings schemes for the July to September quarter of 2023.
The government revised the interest rates on specific post office small savings schemes upward for the second quarter of fiscal 2023-24.
The finance ministry on Friday revised upward the interest rates on certain small savings schemes for the July to September quarter of 2023.
Recurring Deposits
As per its June 30 circular, the interest rates for five-year recurring deposits increased by 30 basis points to 6.5 per cent, up from 6.2 per cent.
Let’s explore the rates for other small savings schemes.
Post Office Time Deposit Scheme
Interest rates on this scheme have also been revised upward. The interest rates for one-year time deposits increased from 6.8 per cent to 6.9 per cent for the July-September quarter. For two-year time deposits, the rates increased by 10 basis points to 7.0 per cent from the previous 6.9 per cent.
However, the interest rates for three and five-year time deposits stayed the same. The rates for savings accounts also remained the same at 4 per cent.
Interest Rates for the following schemes stayed the same.
Senior Citizen Savings Scheme (SCSS)
The interest rate for the SCSS scheme remained the same at 8.2 per cent. It still has the highest interest rates among all other small savings schemes. The interest is payable at the end of every quarter. The minimum investment amount is Rs 1,000, and the maximum is Rs 30 lakh.
Only those aged 60 and above can open this account. They can also claim tax benefits under section 80C of the Income Tax Act.
Post Office Monthly Income Account Scheme
The rates remained the same as in the first quarter at 7.4 per cent. Anyone can open this account with a minimum of Rs 1,000 and in multiples of Rs 1,000 thereof. Interest is paid monthly. Investment up to Rs 9 lakh is allowed in a single account and Rs 15 lakh for a joint account.
Public Provident Fund Account (PPF)
The interest rates on a PPF account also remained unchanged at 7.1 per cent. The minimum investment amount is Rs 500, and the maximum is Rs 1.5 lakh in a financial year. PPF investments are tax-free, while the interest is compounded yearly.
Sukanya Samriddhi Accounts (SSA)
The interest rate remained unchanged at 8.0 per cent. The minimum investment amount is Rs 250, and the maximum is Rs 1.5 lakh in a year. The interest is compounded annually.
National Savings Certificates (NSC)
The NSC rates also remained unchanged at 7.7 per cent for the second quarter of FY23-24. The interest is compounded annually. The minimum deposit in this account is Rs 1,000, with no limit on the maximum deposit.
Kisan Vikas Patra (KVP)
The rates for this scheme also stayed the same at 7.5 per cent. The scheme matures in 115 months or nine years and seven months. The minimum deposit amount is Rs 1,000, and after that, in multiples of Rs 100 with no maximum limit.